What Is Vehicle to Grid and Vehicle to Load?

By
Chase Drum
Sep 2024
6
min
Vehicle-to-grid (V2G) and vehicle-to-load (V2L) technologies might revolutionize how we think about energy, transportation, and the power grid. They can help substantially reduce charging and operating costs while also enhancing the security of the grid and reducing carbon emissions from energy production.
electric vehicle powering a house
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The Power of an EV, Not Just on the Road

As the world shifts towards cleaner, more sustainable modes of transportation, innovations in EV technology continue to emerge, offering more than just environmental benefits and a smooth, swift driving experience. One the benefits the latest-generation EVs – and ones soon to arrive – can offer are vehicle-to-grid (V2G) and vehicle-to-load (V2L) technologies. These advancements have the potential to revolutionize how we think about energy, transportation, and the power grid, offering substantial benefits to consumers and society at large.

Tesla parked outside home with solar panels on roof

Understanding Vehicle-to-Grid and Vehicle-to-Load

Before diving into the perks of V2G and V2L, it’s important to understand what these technologies entail.

Vehicle-to-grid (V2G) technology allows EVs to communicate with and transfer energy back to the power grid. Essentially, it turns EVs into mobile energy storage units. When connected to the grid, an EV can feed electricity back to the grid during peak demand periods, helping to stabilize the grid and reduce reliance on traditional power plants.

Traditionally, commercial vehicles like electric school and city buses have offered this technology. Now, vehicles from Ford, Tesla and GM are supporting this functionality for residential use. They approach it in different ways, but we’ll dive more into how later in this article.

Vehicle-to-grid is different from vehicle-to-load, which is another technology you may have heard about.

Vehicle-to-load (V2L) technology, on the other hand, enables EVs to power external devices and appliances directly. This means that your EV can act as a portable power source, providing electricity for anything from household appliances to outdoor equipment. This takes a few different forms, such as Hyundai using its charge port and an adapter to power devices much like a normal power outlet in your home would. Other new EVs and electric trucks like the Ford F-150 Lightning have actual power outlets built into the vehicle directly.

Advantages of V2G Technology

For consumers, vehicle-to-grid offers numerous advantages, including substantial cost savings, improved energy security, and less reliance on the grid – not to mention environmental benefits like reduced emissions. V2G also has benefits for society at large, such as mitigating power outages and blackouts.

Financial Incentives and Savings

The most consistent benefit of V2G for residential consumers is the potential for financial savings. Through V2G, consumers can participate in energy markets by selling excess electricity stored in their EV batteries back to the grid. This process, known as "peak shaving," allows utilities to reduce the strain on the grid during high-demand periods by drawing power from connected EVs (those that are plugged in at home).

In return, EV owners can receive compensation or discounts on their electricity bills. Over time, these financial incentives can significantly offset the cost of owning an electric vehicle, making V2G-equipped EVs an attractive option for cost-conscious consumers. These discounts are dependent on whether your local utility is offering V2G support – so it pays to ask!

Enhanced Energy Security and Grid Resilience

V2G technology also plays a crucial role in enhancing energy security and grid resilience. By providing a decentralized source of power, V2G can help mitigate the impact of power outages and reduce the risk of blackouts during extreme weather events or other emergencies.

During times of crisis, when the grid is under stress, the ability to draw power from a distributed network of EVs gives the grid added resiliency. This decentralized approach to energy management not only benefits utilities, but also ensures that consumers have a reliable source of power when they need it most.

Environmental Benefits of V2G

By enabling EVs to supply energy back to the grid, V2G can reduce the need for fossil-fuel-based power generation during peak demand periods. This leads to lower greenhouse gas emissions and a cleaner energy mix.

Plus, as renewable energy sources like solar and wind become more prevalent, V2G can help integrate these intermittent resources into the grid more effectively. EVs can store excess renewable energy when production is high, and release it when demand peaks, further reducing the carbon footprint of electricity generation.

Challenges of V2G Technology

While V2G has the potential to transform the way we use our electric cars, and can defer the need to expand the power grid by providing additional power when it’s needed, it is still a nascent technology. There are a number of challenges that need to be worked out before its potential is maximized.

Lack of Standards and Interoperability Between Automakers

Vehicle-to-grid tech varies between automakers, and while there is work currently to better standardize V2G offerings, it’s still early in the process. There has been talk of the Tesla-style NACS/J3400 charging standard including V2G in its specification, but the details are still being worked on. That means Ford’s Charge Station Pro or Tesla’s Powershare system will likely not work with EVs from other automakers over the long term.

Alternating Current (AC) or Direct Current (DC)?

There’s a difference between what type of electricity is put out by different EVs back to the grid. Some, like Ford’s system, output DC electricity, while others, like Tesla’s, output AC. Rivian’s current vehicles will eventually support DC – but the company has shared that their next generation vehicle will output AC.

The main advantage of AC is that it minimizes the hardware needed to be added to your home to support V2G, which is why more manufacturers are embracing AC V2G technology.

Added Costs for V2G

The cost of outputting AC is more expensive when building the car to make sure its inverter can support AC output – versus the inverters already installed in EVs, which are already built to support higher-speed DC charging.

Thus, vehicles with V2G technology that output AC could cost more – because more hardware is needed. EVs with DC V2G could have a lower initial purchase price due to needing less hardware on board.

Regardless of what kind of EV you choose, you’ll likely need to upgrade your home to take advantage of its V2G abilities. If you don’t already have a home backup system like a gas generator, you will probably have to add a lot of hardware and panel updates. A panel upgrade alone could cost $7,000 or more.

Tom Moloughney from the State of Charge Channel did a great job documenting his addition of Ford’s Backup Power System to his home, which replaced some of the functionality of his existing generator.

The Future of V2G and V2L

As V2G and V2L technologies continue to evolve, their integration into the broader energy ecosystem is expected to grow. The potential benefits for consumers are substantial, from financial savings and enhanced energy security to increased battery longevity and versatile power solutions.

As some of the early challenges are solved, we can expect to see more car buyers viewing their vehicles, not just as a means of transportation, but as integral components of their energy management strategy.

More Benefits for EV Drivers In the Future

As vehicle-to-grid and vehicle-to-load technologies could become standard features in electric vehicles, this represents an exciting opportunity for EV drivers. Being able to take control of their energy usage, reduce their environmental impact, and enjoy greater convenience and security in their daily lives.

V2G and V2L technologies offer a myriad of advantages to consumers, making electric vehicles more than just a green alternative to traditional cars. They are a key part of a larger energy revolution that empowers individuals to contribute to a more sustainable, resilient, and cost-effective energy future. As these technologies become more widespread, the perks of owning an EV will only continue to grow, making them an increasingly attractive choice for consumers worldwide.

Front view of a Tesla Model 3 driving through canyon roads

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